As we finish 2020, I wanted to provide Some Good News and highlight some of the financial positives that have transpired in the last year:

• As published in Trading Economics in December 2020, wages increased by an average of 2.31% in 2020, to reach new all-time highs³.   Further, average hourly wages and average weekly wages also attained new all-time levels. 
• According to a WalletHub study, US Consumers ended the year with a decrease in credit card debt of around an $89 billion.    And for the first time in 30 years, credit card debt dropped from the months of April through September.  According to JP Morgan Asset Management year-end statistics, the average household consumer debt is at its lowest point since 2002¹. 
• While the last 10 years savings rates have averaged between 6-8%, Americans saved over 17% of their wages in 2020.    According to data from the Federal Reserve Bank of St. Louis, Americans saved more money (as a percentage of income) in 2020 than in any year since 1975².   In fact, in 2020, more that $1 trillion was added to checking accounts in America—which is more than double what was held at the end of 2019. 
• The S&P 500, despite massive swings, ended up with its 31^st positive year out of the last 41.  During that time, there has been an average inter-year correction of 14.3%.   While the 34% drop from February 19^th to March 23^rd was the most precipitous in history; it was quickly followed by the greatest bull market in history—reaching new all- time highs by mid-August.   In fact, the S&P 500 finished the year 68% above its March 23^rd low.

It’s not lost on me, that despite the positive wages, savings, corporate earnings, and overall reduction in consumer debt; this pandemic did not hit everyone evenly.    There were some 9 million jobs lost in 2020, and to many of those who could least afford it.   The main point is that our economic recovery from the start of the pandemic is well on its way.

For those who could least afford it, the creation and distribution of vaccines cannot happen soon enough.   Fortunately, after some 100 years to create a vaccine for Typhoid fever, 45 years to create a vaccine for Polio, and 17 years for Hepatitis B; we have at least 3 vaccines for SARS-CoV-2 that were created within one year⁴.  

In December 2020, it was reported if we keep distributing vaccines at the current rollout rate, it could take ten years to reach herd immunity (70% of the population vaccinated).   Now, we are looking to get 100 million of our 350 million in our population vaccinated by late Spring. 

       The greatest positive from this pandemic is that we have all been reminded of our own resilience and adaptability.  

• How many of us are working remote more than one year ago?   Did you figure out a new, more efficient way to do business—only because you had to?
• How many of us have figured out how to work out from home? (Thank you, Peleton.)   
• How many of us have figured out how to automate other parts of your life (i.e. having groceries delivered, or figuring out curbside pick-up)?  
• How many of us have decluttered our lives in a way that has given new energy or focus?  Or used your new free time to reflect more on what is meaningful to you?

Difficult times present great opportunities for growth.   As outlined above, the economy is figuring it out.  Science also seems to be figuring it out (at breakneck speed).  Hopefully, the last 12 months has provided you the opportunity for some lasting positive effects as well. 

As always, the team at Moxie is grateful for the trust you place in us.   We are looking forward to catching up with you during our next review.

Best Regards,

Joe and the Moxie Team

¹JP Morgan, Guide to Markets, December 31^st, 2020.

²NextAdvisor, The Pandemic Has Resulted in Record US Savings Rates, but Only for Some, Jan 7, 2021.

³Trading Economics, United States Wages and Salaries Growth, 1960-2020 Data.

⁴Nature, Vaccine Innovation, Feb 3, 2021

⁵WalletHub, 2020 Credit Card Debt Study, Dec 8, 2020